- Theme park construction company Empire Industries (EIL) has created a new subsidiary after completing its internal reorganisation
- The new subsidiary, Dynamic Structures, will primarily be responsible for research and development activities
- After the reorganisation, Empire Industries also completed a private placement in which it raised approximately C$5 million
- Dynamic Structures’ short-term operations will be funded by the proceeds of that private placement
- Empire Industries (EIL) is up four per cent and is currently trading at 26 cents per share
Theme park construction company Empire Industries (EIL) has created a new subsidiary after completing its internal reorganisation.
The corporate restructuring has produced an entity called Dynamic Structures (DSL), which will be a research and development subsidiary.
Through the reorganisation, DSL received a number of assets from Empire Industries’ wholly owned ride manufacturing subsidiary, Dynamic Attractions. These transferred assets included employment of a subset of highly skilled development engineers, trade secrets and other related engineering know-how.
In the aftermath of the reorganisation, Empire Industries also completed a private placement, in which it raised approximately C$5 million. Through the placement, new investors were able to buy Class C shares in DSL.
DSL’s short-term operations will be funded by the proceeds of that private placement.
As a result of the private placement, DSL is only 50 per cent owned by Empire Industries, with the other half owned by the investors. However, under a shareholder agreement, Empire has the right to repurchase the shares in DSL which were sold to investors for $5 million, after a certain amount of time.
Empire Industries’ CEO, Guy Nelson, commented on the company’s creation of its new subsidiary, Dynamic Structures.
“I am delighted that we have successfully created a company dedicated to continue our rich tradition of innovation through our development activities, which have been and will continue to focus on creating proprietary technologies that are leverageable in the marketplace.
“These developmental activities are expected to continue to drive revenue in the ride and the non-ride business.
“The potential customers that DSL will appeal to will be seeking to add value to their business by engaging DSL’s world-class development engineers,” he said.
Empire Industries (EIL) is up four per cent and is trading at 26 cents per share at 9:43am EDT.